Most domainers are not profitable today. Hand registration of terrible names is one of the many reasons why. Lack of diversity and quality is causing them to fail. They are not educated or capable enough to register genuinely good names. They’re buying names like ‘qualitygadget.com’, ‘hotd.biz’, and ‘dolphincruise.net’, yes, these are all recently registered names! They’re opting for a large quantity of sub-par names rather than spend a little more to get decent names. I do believe in hand registration, but it’s not for everyone. The above names have too many equal or better options for end-users. In other words, they’re a dime a dozen. These names must compete with 100’s or 1000’s of similar names on the market. With so many low quality domains, it is difficult to make sales large enough to cover renewal costs.
Most people’s best bet would be to invest in quality names! The quality names will be ones that appreciate in value in an undeniable way. Look for names that only a dozen or so variations can compete with. Look for deals on names like ‘gadgetHQ.com’, ‘hotdog.biz’, and ‘cruise.net’. You’ll pay more, but in the long run, it will be worth it. Names of such quality can be bought for a few hundred or less with some patience and determination.
We must diversify. There are always new trends. Newbies often start their domaining career in the mist of a flavor of the month trend. There was a .mobi trend, a 3D printing trend, and most recently, virtual reality. These new domainers get tunnel vision and only invest in what’s trending because there’s a big social sphere around it. Other delusional investors are eager to give them a pat on the back for the registration, usually not matter how bad.
More often than not, these trendy names fail us. Even if there is real world success, the domain names don’t come into demand as expected. Again, you need premium names, undeniably good, to profit here. For example, VR, virtual reality, is a big deal, it is growing in the real world, and will probably end up a large part of life. Even so, this is not reason enough to register 2nd rate names. 2nd rate names don’t work for anything else (IE: insurance, homes, investing), and they wont end up working here!
People come from all walks of life, all looking for something different. If you are diversified among niches, you’ll have something for everyone – you’ll make sales more often. You’ll also be reducing risks, which is always important. Diversifying will also help you become a better domainer. You need a variety of experiences. If you have tunnel vision, you miss everything else around you. You start taking on worse and worse domains due to misguided anticipations. Expand your mind!